Addressing the cost of human error in accounting

26/02/2018

When it comes to accountancy, accuracy is obviously essential. It’s striking, though, that many accountants still rely on outdated working practices, bypassing some easily automated processes and greatly increasing the potential for human error in the process. According to IT security company Databarracks, a massive 70% of data losses for accountants were caused by human error. This is only one example of what can go wrong. Errors in spreadsheets can also have disastrous consequences, as a number of major companies and government departments, from MI5 to Barclays, have found. Research shows that up to 88% of spreadsheets contain an error. So how can this huge margin for error be corrected and how can accountants adapt their solutions and processes to minimise the risks involved with handling their client data?

Adopt automated processes

Automation, a word that is sending chills down the spines of accountants all around the globe right now. However, in most cases, automating data handling and reporting processes would greatly reduce the risk of error. A survey performed by Bloomberg BNA found that of 200 in-house accountants surveyed, more than 27.5% reported that incorrect data had been manually imported into an enterprise system at their firm. By using a solution which supports automated form filling, such as Microsoft Dynamics 365 for Financials or Microsoft Dynamics GP; the risks involved in a manual data entry process can be greatly alleviated. Both Dynamics 365 for Financials and Microsoft Dynamics GP can utilise PowerBI to produce highly accurate and actionable reports in real-time based on your data, allowing for errors to be detected and addressed before they do any damage.

Centralise your information

One of the biggest problems for accountancy firms is accountants saving information on personal devices, limiting access to important client information to, at times, only one individual. The same Bloomberg BMA report found that this issue was widespread with “18% of accounting and tax professionals reporting that employees had saved files with corporate financial or tax data to personal devices.” When access to information is limited, the potential for human error becomes much higher as it is unable to be monitored and reported on regularly. By centralising client information within a cloud-enabled system such as Dynamics 365 for Financials, accountants can store, access and report on information remotely and on-the-move. With a cloud-enabled solution, information can be backed-up and stored in the cloud, making the retrieval of lost data far simpler.

How can City Dynamics help?

As a Gold Microsoft partner specialising in both Microsoft Dynamics 365 for Financials and Microsoft Dynamics GP, City Dynamics can provide a system that suits your needs and is scalable. With our CloudPath data migration solution, we can also assist in moving your data from on-premise to the cloud at a pace that suits your needs. As well as creating a tailored solution, City Dynamics provides dedicated support, ensuring your team understands how to make the most of the new software and its functions, reducing the risk of errors in the future.

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